Economic Performance Measure
An Economic Performance Measure is a system performance measure of an economy.
- AKA: Econometric Measure.
- Context:
- It can range from being a Macroeconomic Economic Measure to being a Microeconomic Economic Measure to being an Economic Agent Economic Measure.
- It can produce an Economic Value Estimate.
- It can be associated to an Economic Performance Change Measure.
- …
- Example(s):
- a Macroeconomic Measure, such as:
- an Economy Output Measure, such as GDP.
- a Productivity Measure.
- a Market Measure, such as a labor market measure.
- a Demand Measure or a Supply Measure.
- a Wealth Measure or an Income Measure.
- …
- a Macroeconomic Measure, such as:
- Counter-Example(s):
- See: GDP.
References
2014
- (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Measurement_in_economics Retrieved:2014-2-9.
- The measures used in economics are physical measures, nominal price value measures and fixed price value measures. These measures differ from one another by the variables they measure and by the variables excluded from measurements. The measurable variables in economics are quantity, quality and distribution. By excluding variables from measurement makes it possible to better focus the measurement on a given variable, yet, this means a more narrow approach. The table was compiled to compare the basic types of measurement. The first column presents the measure types, the second the variables being measured, and the third column gives the variables excluded from measurement.
- (Piketty, 2014) ⇒ Thomas Piketty. (2014). “Capital in the Twenty-First Century." Harvard University Press. ISBN:9780674369559
- QUOTE: … For example, income, capital, the economic growth rate, and the rate of return on capital are abstract concepts — theoretical constructs rather than mathematical certainties. Yet I will show that these concepts allow us to analyze historical reality in interesting ways, provided that we remain clear-eyed and critical about the limited precision with which we can measure these things. I will also use a few equations, such as [math]\displaystyle{ a = r × ß }[/math] (which says that the share of capital in national income is equal to the product of the return on capital and the capital/income ratio), or [math]\displaystyle{ \beta = s / g }[/math] (which says that the capital/income ratio is equal in the long run to the savings rate divided by the growth rate).
2013
- (Wikipedia, 2013) ⇒ http://en.wikipedia.org/wiki/Value_(economics) Retrieved:2013-12-27.
- Economic value is a measure of the benefit that an economic actor can gain from either a good or service. It is generally measured relative to units of currency, and the interpretation is therefore "what is the maximum amount of money a specific actor is willing and able to pay for the good or service"?
Note that economic value is not the same as market price. If a consumer is willing to buy a good, it implies that the customer places a higher value on the good than the market price. The difference between the value to the consumer and the market price is called "consumer surplus". It is easy to see situations where the actual value is considerably larger than the market price: purchase of drinking water is one example.
The economic value of a good or service has puzzled economists since the beginning of the discipline. First, economists tried to estimate the value of a good to an individual alone, and extend that definition to goods which can be exchanged. From this analysis came the concepts value in use and value in exchange.
Value is linked to price through the mechanism of exchange. When an economist observes an exchange, two important value functions are revealed: those of the buyer and seller. Just as the buyer reveals what he is willing to pay for a certain amount of a good, so too does the seller reveal what it costs him to give up the good.
Additional information about market value is obtained by the rate at which transactions occur, telling observers the extent to which the purchase of the good has value over time.
Said another way, value is how much a desired object or condition is worth relative to other objects or conditions. Economic values are expressed as "how much" of one desirable condition or commodity will, or would be given up in exchange for some other desired condition or commodity. Among the competing schools of economic theory there are differing metrics for value assessment and the metrics are the subject of a “Theory of Value." Value theories are a large part of the differences and disagreements between the various schools of economic theory.
- Economic value is a measure of the benefit that an economic actor can gain from either a good or service. It is generally measured relative to units of currency, and the interpretation is therefore "what is the maximum amount of money a specific actor is willing and able to pay for the good or service"?
2000
- (Harrison & Huntington, 2000) ⇒ Lawrence E. Harrison, and Samuel P. Huntington (editors). (2000). “Culture Matters: How Values Shape Human Progress." Basic Books. ISBN:9780465031764
- QUOTE: As the credibility of traditional explanations - colonialism, dependency, racism - declines, many now believe that the principal reason why some countries and ethnic groups are better off than others lies in the cultural values that powerfully shape nations and people's political, economic, and social performance.